Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak Guaranteed Fortune Builder

A plan that offers guaranteed income for your future goals. Know more

Kotak e-Term

Protect your family's financial future. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and life cover. Know more

Kotak e-Invest

Insurance and Investment in one plan. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more

Close

Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

Staying Insured While Investing

ULIP gives access to both life insurance & investment. These plans allow you to enjoy a life cover and the opportunity to earn market-linked returns. Read to know how to stay insured while investing.

  • Nov 15, 2001
  • 13,118 Views

How to enjoy dual benefits of insurance and investments?

Investments serve two purposes to help us achieve our goals - they help us save money for our needs and also give us a way to increase the value of our savings. Insurance Policies add a third dimension to our investments – security!

Unit-linked Term insurance plans (ULIPs) give you access to both –insurance and investment. These plans allow you to enjoy a life cover and the opportunity to earn market-linked returns.

A part of the premium you pay goes towards providing the insurance cover, while the balance, after deducting the distribution and management charges, gets invested as per your choice.

Investing as per your risk appetite

The investment proportion of your premium gets invested into different fund options managed by professional fund managers. These fund options, in turn, invest the premium amount in varying proportions of various financial instruments like equities, debt and money market instruments.All these investment options carry different levels of risk and return potential. Generally higher the risk, higher would be the return potential. While equities involve the highest investment risk, they also tend to give higher returns over the long run.

You can decide how much amount you wish to allocate in the fund of your choice and also enjoy the freedom to switch between the fund options any time.

With ULIPs, you can benefit from:

A wide choice of investment options: ULIPs give you a range of investment options. You can choose to invest your money into pure equity or debt funds or a combination of both, based on your preference and risk profile.

Systematic investments:ULIPs encourage investments in a disciplined manner. Investing regularly in small doses over a period of time lets you gain from the benefit of rupee cost averaging, which evens out the highs and lows of a fluctuating market.

Investor B invests the same amount of Rs 90,000 through periodic investments of Rs 15,000 every month over a period of six months and purchases the same equity share at different rates. At the end of the six-month period, while both the investors had invested the same amount, Investor B has been able to purchase more units.

In this way, rupee cost averaging could help you lower the average purchase costs and make the most of price fluctuations depending upon the prevailing market conditions.

Flexibility: ULIPs let you choose the life cover and the desired premium amount, in most cases. You can also switch between various fund options with ease.

Transparency: You know how and where your money is invested and can even track your portfolio performance. You are kept informed of all the applicable charges as well as your net investment amount.

Changed for good: In 2013, the Insurance Regulatory and Development Authority of India (IRDAI) introduced sweeping changes in the ULIP structure adding more value to it, resulting in improved benefits for the investor:

Get more investible surplus: ULIPs come with a low charge structure, which implies that a greater portion of the premium is invested to give you fruitful returns.

Get minimum guaranteed returns on pension products:Your lifetime savings will now get enhanced protection from market fluctuations, as pension ULIPs will now ensure a minimum guaranteed return on maturity.

Enjoy a higher risk cover:All ULIPs other than pension and annuity products will now provide a minimum life cover or health cover, higher than what is being offered presently. For pension and annuity ULIPs, life/health cover will be provided as riders. Thus, you can now enjoy higher cover to tide over life’s uncertainties.

Enjoy a longer investment period: The new ULIPs have a lock-in period of 5 years. Besides, all ULIPs (excluding single premium ULIPs) will now have a premium paying term of at least 5 years. This way you will stay invested for a longer time frame. Investing small amounts at regular intervals over a longer period would help you build a bigger corpus.

Even distribution of charges: Charges on ULIPS are evenly distributed during the lock-in period and you would be paying equal amounts throughout the lock-in period.

Liquidity: Anytime after completion of 5 years of the policy, if you are faced with an emergency, you can choose to surrender your policy without any additional costs or charges.

Thanks to these reforms, Unit Linked Insurance Plans have emerged as a vital long-term protection and savings vehicle, with enhanced customer value.

Disclaimer

Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. Kotak Mahindra Life Insurance Company Limited (formerly known as Kotak Mahindra Old Mutual Life Insurance Limited) is only the name of the Insurance Company and ULIP Plans offered by the Company does not in any way indicate the quality of the contract, its future prospects or returns. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document of the insurer. Tax benefits are subject to change in tax laws. You are advised to consult your tax advisor for details. In this policy, the investment risk in investment portfolio is borne by the policyholder. For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale. Insurance is the subject matter of the solicitation. Kotak Mahindra Life Insurance Company Limited (formerly known as Kotak Mahindra Old Mutual Life Insurance Limited). Regn No. 107. Regd. Address: 9th Floor, Godrej Coliseum, Behind Everard Nagar, Sion (E), Mumbai - 400022.Toll Free No.1800 209 8800.Ref. No. KLI/10-11/E-WEB/188.

Kotak e-Term

Download Brochure

Features

  • Life Cover till 85 years for Life & Life Secure Option
  • 3 Payout Options
  • Special Rates for Women
  • Option to exit the policy with premium refund at the age of 60*
  • Special Rates for Non-Tobacco Users
  • Free Medical Check Up every 5th year**

Ref. No. KLI/22-23/E-BB/2435

T&C

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Life Insurance vs. Death Insurance: Exploring the Key Distinction

5 Common Life Insurance FAQs and Answers

How to Buy Life Insurance Policy Online?

What are the Benefits of Endowment Policy?

Is Life Insurance Worth It?

What is the Difference Between Insurance and Reinsurance?

Advantages of Digitizing the Insurance Claims Process

Life Insurance vs Mutual Funds

Choosing a Life Insurance Beneficiary

Life Insurance Beneficiary

Important Life Insurance Terms You Must Know

How to Choose a Life Insurance Policy

Invest in Insurance to Secure Your Future

What Is The Life Insurance Penetration In India And How Does It Compare Globally?

Why You Should Never Cancel Life Insurance Policy

What Is the Difference Between Group Term and Voluntary Term Life Insurance?

Life Insurance with Money Back vs Without Money Back

1 CR Term Insurance Plan: How to Pick the Best 1 CR Term Plan

How to Use Different Types of Life Insurance for Retirement Planning?

What Should One Consider Buying: Term Insurance or Traditional Life Insurance

What Should One Expect During the Medical Evaluation for Life Insurance?

भारत में गृहणियों के लिए टर्म इंश्योरेंस

Why is Medical Test Important While Buying a Term Insurance?

How Do Term Insurance Plans Differ for Smokers?

9 Most Important Things You Must Learn About Paying Life Insurance Premium

Why do most Indians choose the wrong way to buy life insurance?

What Happens If You Stop Paying Premiums of Life Insurance?

Role of Life Insurance in Your Financial Portfolio

Beware of Phishing & Fraud Insurance Calls

How to Choose Life Insurance for All Ages?

How Many Insurances Should I Have?

Do Your Financial Planning with Life Insurance!

Do College Students Need to Buy a Life Insurance?

Know the many types of life insurance policies in India

Is it Possible to Reduce Life Insurance Premium without Affecting Sum Assured?

Process of Filing A Claim For Life Insurance

Why do I Need Life Insurance?

How to Customize Your Life Insurance Policy with Riders

Different Types of Protection Plans

Does Life Insurance Policy Cover Covid Death?

Should You Buy Life Insurance After Getting Married?

Why Term Insurance for Women is Important?

Details Required To Be Filled In A Life Insurance Form

Why Porting Health & Life Insurance after Marriage is Important?

Sabse Pehle Life Insurance

Benefits of Term Insurance for Senior Citizens in India

Life Insurance for Overweight Applicants

Life Insurance Nominees: 5 Must-Know Facts for Beneficiaries

Loan Against Life Insurance Policy

Want to surrender your life insurance policy? Here's a guide

How Much Life Insurance Should You Have?

Digital Life Certificate for Pensioners Seeking Pension

Compare Different Life Insurance Products Offered By Kotak Life

When are Millennials required to take out a life insurance policy?

7 Superficial Reasons People Avoid Buying Insurance Online

What Is Insurance Rider and It’s Benefits?

Backdating in Life Insurance: Should You Avoid it?

Choosing Riders for Insurance Plans

Think About Life Insurance Sooner than Later

Adding a Child to Your Life Insurance Policy?

Always keep your Nominee informed

Difference Between Insurance and Assurance?

Life Insurance Plans for Women

Who Is A Nominee In A Life Insurance Plan?

All You Need to Know About Life Insurance - Its Benefits, Features, and Types of Life Insurance

5 Reasons Why a Women Should Buy a Life Insurance

6 Things You Didn't Know Life Insurance Could Do

Life Insurance Vs. Mutual Funds Investment

Different Types Of Life Insurance In India

Can You Apply For A Life Insurance After Getting Heart Attack? Here is Everything You Need To Know

Ensure Protection Against Death, Disease & Disability With Life Insurance

Term Life Insurance vs Accidental Death Insurance

Important Factors to Consider While Choosing the Right Term Period for Your Term Insurance Plan

Is It Time to Review Life Insurance Policy of Yours?

Why Life Insurance is Always a Smart Decision?

What is Insurance Premium? | Definition of Insurance Premium

जीवन बीमा क्या है?

NRI Premium Payment Options

Benefits of Term Insurance with Critical Illness Rider

Top 5 Common Life Insurance Myths and Facts

Is it Possible to Make Changes in a Term Plan’s Specification Post Purchase?

Kotak Life Claim Settlement Ratio

Nominee in insurance - A Complete Guide on nomination in insurance

What are robo-advisors in insurance?

Best Insurance Plans in India

Life Insurance and Retirement Planning

Difference Between Money Back and Endowment Policy

Key Things to Review in Your Life Insurance Policy Document

What is KYC - Meaning, Types, and Importance

Comparing low premium term insurance Is Not the Only Factor While Buying Life Insurance

Terminal Illness Benefit in Term Insurance

Important Terminologies of Life Insurance

Everything You Need to Know About Endowment Policy

Health Insurance VS Life Insurance

Does Life Insurance Pay for Suicidal Death?

All about Life Insurance Calculators

बीमा क्षेत्र में IRDAI की भूमिका

क्या जीवन बीमा एक निवेश है?

Voluntary Life Insurance vs. Basic Life Insurance

Know the many types of life insurance policies in India

5 Things to Keep in Mind While Buying Life Insurance Policy

What is the process of reactivating lapsed life insurance policy?

Do Life Insurance Premiums Increase Every Year?

Is It Advisable To Have Multiple Life Insurance Policies?

Customer Awareness on Information Security

How to Make Death Claims on Life Insurance?

जीवन बीमा पर ऋण

How often should I review my policy?

What Is Surrender Value (Cash Surrender Value) in Insurance and how is it calculated?

Can a Term Plan be the Substitute for a Retirement Plan?

Different Kind of Deaths that are Not Covered in a Term Insurance Plan

6 Different Types of Insurance Policies

What is Insurance Coverage? Overview, Types, and Examples

What is the Difference Between Limited and Regular Pay Insurance Plan?

What is Underinsurance & The Dangers of Being Underinsured

भारत में जीवन बीमा पॉलिसियों के प्रकार

Most Common Life Insurance Riders to Enhance Your Existing Policy

Is Life Insurance For Millennials Really Needed?

भारत में सर्वश्रेष्ठ टर्म प्लान कैसे चुनें?

How Much Term Life Insurance Cover Do I Need?

Guidelines for Linking Aadhar and PAN to Insurance Policies

Insurance vs Investment - Know the Difference

Types of Riders in Insurance Policy

Choosing Between Short-Term & Long-Term Insurance Plans

Term Plan with Return of Premium (TROP)

How do life insurance payouts work?

What Is Investment Insurance?

What Is the Procedure to choose a nomination in life insurance policy?

Life Insurance for Overweight Applicants

How Does Life Insurance Work?

Role of IRDAI in the Insurance Sector

Biggest Life Insurance Myths

Why Your Family Should Know About Your Life Insurance Policy?

All About Life Insurance and How It Works?

What is Life Insurance?

Health Insurance VS Life Insurance

How Much Life Insurance Do You Need?

Insurance and Endowment: Everything You Need to Know!

What is Human Life Value (HLV) & How to Calculate it?

How to Select a Perfect Life Insurance Policy in India to Protect Your Future?

Here's How to Choose The Tight Life Insurance

All about IRDAI

Why Do Life Insurance Agents Avoid Selling Term Plans?

What happens to joint life insurance after divorce?

What is Minimum Life Insurance Policy?

5 Easy Steps to Buying A Policy

In India, should NRIs purchase life insurance?

Savings cum Protection Plans Secures Your Family from Unforeseen Events

What is Human Life value and a Human Life Value Calculator?

Can I Transfer My Term Life Insurance Policy to another Company?

Importance of Checking Claim Settlement Ratio before Buying Life Insurance

What is Group Insurance?

6 Ways You Can Ensure Fast & Smooth Claim Settlement

Life Insurance for Millennials

Whole Life Insurance Definition: How It Works, With Examples

Life Insurance and Millennials

All about Your Rights and Duties While Buying Life Insurance Policy

Does Family History Affects your Term Life Insurance Rates?

FAQs on Life Insurance

How to Choose the Right Term Plan as per Your Age

Term Insurance Vs Life insurance: Small Details, Big Differences

Different Types of Insurance Policies in India

Tax benefit: Is your single premium life insurance policy eligible for tax benefits?

Benefits of Gifting Term Insurance to Your Spouse